Assignment: Investing Fixed Assets

Want create site? With Free visual composer you can do it easy.

Assignment: Investing Fixed Assets

Assignment: Investing Fixed Assets

ORDER NOW FOR AN ORIGINAL PAPER:Assignment: Investing Fixed Assets

Cash flow from investing activities includes the changes in cash between statement periods for investing in fixed assets, such as property and equipment, and for selling fixed assets. Cash flow from financing activities includes the changes in cash between statement periods for financing activities—such as debts, endowments, grants, and transfers—to and from parent organizations.

Net increase (decrease) in cash and cash equivalents is computed by adding the net cash from operating, investing, and financing activities.

Cash and cash equivalents, beginning of year corresponds with the cash and cash equivalents, end of year for the previous year. Cash and cash equivalents, end of year is com- puted by adding the net increase (decrease) in cash and cash equivalents to the cash and cash equivalents, beginning of year, and corresponds to cash and cash equivalents on the balance sheet for the same statement period.

00_Nowicki (2339) Book.indb 58 5/17/17 10:57 AM

A ratio is a comparison between two or more financial facts, such as income to assets or assets to liabilities. Ratios are useful because they help an organization compare a period’s results to previous periods or to the results of other, similar organizations.

Ratios emerge from facts located on the financial statements, which report an organiza- tion’s financial position at a point in time and its financial operations over a period of time. Investors and creditors analyze financial statements, primarily through ratio analysis, to predict future earnings and the ability to service debt. Managers use ratio analysis to predict the future and to plan strategies that will influence the future. Financial statement analysis concentrates on four classifications of ratios: liquidity, profitability, asset efficiency, and capital structure (see exhibit 3.5 for Optum medians for all hospitals reporting in 2017 for 2015 fiscal years).

ratio Liquidity ratios are ratios that measure an organization’s ability to meet short-term obli- gations. Measuring an organization’s liquidity is important in evaluating an organization’s financial performance.

• Current Ratio Total current assets Total current liabilities The current ratio is the basic indicator of financial liquidity, which is an organization’s ability to meet its obligations. It is nondirectional; higher values mean better debt-paying

liquidity ratios

Did you find apk for android? You can find new Free Android Games and apps.